Global expertise, local knowledge
27 Feb 2018
There is a clear interest of the National Government, headed by the Tax Administration to know the details of its operations and maintain greater control over the entities belonging to the special tax regime.
In Colombia there are two regimes in the income tax, the generality is the ordinary regime that taxes 33%, and the special regime that pays the tax at 20%, and in exceptional cases for this regime, when the annual surpluses are reinvested in development of activities of its corporate purpose, will be exempt from tax gain.
This second regime can be accessed by non-profit entities that comply with all the requirements contemplated in the new regulations that apply as of January 1, 2017.
The Non-Profit Entities - ESAL in Colombia, are taxpayers of the income tax and to be considered of the special tax regime these corporations must:
i) Develop designated meritorious activities in education, health, culture, science and technology, or activities to protect the environment.
(ii) That said activities are of general interest and that the community has access to it,
(iii) That their contributions are not reimbursed or their surpluses are distributed directly or indirectly at any time.
Entities that intend to be qualified in the Special Tax Regime, must register via WEB in the application provided by the Tax Directorate and send the required documentation that supports their membership to this regime, likewise they must update it annually within the first three months of every year. Not sending the information or not updating it within the established deadlines will be one of the causes to exclude these entities from the special regime.
The fiscal conciliation will have full evidentiary value and must be retained for the term of finality of the income tax return, that is, 3 years.
Colombia adopted in the recent tax reform (2016), an interrelation between accounting information under international standards and tax information.
Thus, a new formal obligation is born to maintain a system of control or conciliation whereby the taxpayers of the income tax who keep accounts must register the differences that arise between the application of the normative technical accounting frameworks and the provisions of the National Statute Tax.
The fiscal conciliation must contain the information of all the accounting items and the fiscal bases as well as the differences that arise between them both at the level of detail and at the level of the report. The first is an autonomous taxpayer control that, as its name indicates, explains each difference, and the second is a consolidated report that becomes an annex to the income tax return.
For more information about becoming a member, recruitment opportunites or to contact a member firm